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Overhead Element On Work Order At Operation Level (Doc ID 2538624.1)

Last updated on OCTOBER 23, 2019

Applies to:

Oracle Fusion Cost Management Cloud Service - Version 11.13.18.10.0 and later
Oracle Fusion Cost Management - Version 11.1.11.1.0 and later
Oracle Fusion Manufacturing Cloud Service - Version 11.13.18.10.0 and later
Information in this document applies to any platform.

Goal

Customer using standard cost. for assembled items (make items) Customer have defined an overhead cost element and Overhead rates. The work order has got multiple operations (say, 10, 20). The overhead charge is getting applied to the work order only completion of the work order. Customer want an option to apply Overhead at each of the work order operation (say at Operation 10) for accurate WIP valuation.

Please let us know if  the overhead to the WO can be changed at the end of each operation.

Customer exploring the possibility of using Accounting Overhead rules, but  understand the Accounting Overhead rules cannot setup with Absorption Type as ‘ Include in WIP’, if the costing method is standard. Under standard costing, but can only set the Absorption type as ‘Expense’.
 

Solution

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In this Document
Goal
Solution


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